Episode Details

SailPoint, Inc. (SAIL) Q2 FY2027 — SAIL closed September 9 at $17.58, down 1.18% from $17.79. SailPoint grew ARR 25% and SaaS ARR 36%, but quarterly free cash flow fell 18.6%. We follow commission investment, stock compensation and the diluted share count to test what reaches common owners. THE CALL: HOLD (3/5, MODERATE) — base-case value ~$16.50 vs ~$17.58 today. KEY METRICS: - Revenue $308.813M, up 16.8% YoY - ARR $1.231B, up 25%; SaaS ARR $847M, up 36% - Adjusted operating income $62.787M; GAAP operating loss $58.958M - Quarter FCF $37.409M, down 18.6% YoY - Operating equity compensation $68.321M; commission cash outflow $47.627M - Fair value $16.50, range $15.50–$17.50, probability-weighted value $16.35 What to watch: Reassess near $13.20 with the thesis intact, or on better cash conversion: Q3 FCF above prior-year $49.046M, SaaS ARR growth at least 35%, and FY2027 operating SBC below 20% of revenue. Full research packet: https://chargedalpha.com/research/sail-q2-fy2027 Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.